Dear Reader: Time has value. And as such, a part of the analysis as to what the quality of an LED lighting system investment would is to determine what the return on that investment would be over time. Because dollars invested today are not available for other investments once they’ve been deployed (spent) on a […]
Factor In the Value of Time with Internal Rate of Return Read More »
Dear Reader: We’re pretty negative on the value of the Simple Payback metric in assessing the investment quality of a potential LED lighting retrofit, as it alone doesn’t do a very good job in modeling the complete benefits of LED. We ‘get’ the need to produce it, as the vast majority of management personnel need
Simple Payback Isn’t a Key Performance Metric Read More »
Dear Reader: As people, we live daily with the constant need to assess how to maximize the output of every one of our inputs. We do that by any of a myriad of ways, from determining what car will provide the most miles per gallon, to which steak will give us the most ounces per
The King of Lighting System Metrics: Lumens per Operating Dollar Read More »
Dear Reader: It’s not uncommon for the primary metric, when determining a go/no go decision, to be Simple Payback, which, simply put, is the total cost of the investment (in this case a lighting system) divided by the annual dollar savings. The better approach to determining the quality of an LED investment is to engage
The Investment Long View with the Life-cycle Cost Benefit Tool Read More »
Dear Reader: There are three sides to the equation that determines how much money your firm spends per kWh of electricity, and they are your kW of consumption (units), the number of hours you’re consuming that electricity (time), and when (peak versus off-peak). While you can persuade yourself that all three components are fixed –
How to Improve Your Facility’s Cost per kWh Read More »
Dear Reader: It’s always good to measure where your plant stands not only in comparison to where it once was (in order to drive and quantify continuous improvement), but to measure how you compare to other plants across America vis-à-vis any of a variety of available metrics from which to build those models. Our industrial
Compare Your Plant’s Performance to Others’ With Benchmarking Read More »
Controlling costs and managing new acquisition expenses have become pivotal goals for companies over the last few years. Keen on creating shareholder value and boosting bottom lines even when economic conditions weren’t cooperating, purchasing organizations maintained a sharp eye on their organizational bottom lines as they made both long-term and one-time procurement decisions. Read More…
5 Reasons to Use Total Cost of Ownership Read More »
Payback period advantages include the fact that it is very simple method to calculate the period required and because of its simplicity it does not involve much complexity and helps to analyze the reliability of project and disadvantages of payback period includes the fact that it completely ignores the time value of money, fails to depict the detailed
Payback Period Pros & Cons Read More »
Read this section on the Payback Method of investing and review the examples of how this method is used.
The Payback Method Read More »
